Legal Foundations for Local Currency Bond Markets (LFLCBM)

Source details

Provides focused "counsel-to-counsel" legal training on the core legal fields underlying Local Currency Bond Markets.
Addresses the legal foundations of:
- the modalities of sovereign borrowing within the framework of public financial management;
- the primary and secondary markets of sovereign bonds and bills, including the interinstitutional allocation of responsibilities and key transactions (repo, collateral, securities lending);
- the post-trading infrastructure supporting those markets; and
- taxation of sovereign debt instruments and related transactions (e.g., repurchase agreements).
Follows a modular design: some sessions are addressed to the entire group of participants, while other sessions are specifically targeting, respectively, MoF-DMO counsels, central bank counsels, and tax counsels.

Target Audience:
- Mid- to senior-level government lawyers from invited countries—serving as legal counsel in the Ministry of Finance, Debt Management Office, central bank, and tax authority—with direct responsibility for the legal framework governing sovereign borrowing, government securities markets, related financial transactions, or their taxation, and sufficient institutional experience to engage in peer-level, technical legal discussions.
Qualifications:
- Officials from emerging markets and institutionally strong developing countries that have some degree of market development and sufficient capacity to meaningfully engage on the subject matter.

Upon completion of the course, participants should be able to:

Develop a clear understanding of the legal authority and constraints governing sovereign borrowing, as well as the legal foundations of primary and secondary government securities markets.
Acquire a solid legal understanding of repurchase agreements, collateral arrangements, and securities lending transactions.
Be able to identify legal mechanisms for strengthening inter-institutional coordination among the Ministry of Finance (DMO), central bank, and tax authorities.
Understand how tax policy and tax law design affect the development and functioning of sovereign bond markets.
Identify and address key legal bottlenecks in post-trading infrastructure, including settlement, custody, and collateral frameworks.